Ultrajaya Net Profit Surges 74% to $69 Million on Soaring Revenues and Cost-Cutting

JAKARTA, Investortrust.id — Indonesian dairy and beverage giant PT Ultrajaya Milk Industry & Trading Company Tbk (ULTJ) delivered a stellar first-half performance, with net profit soaring 74% year-on-year as surging revenues and aggressive marketing cost controls offset rising raw material expenses.

The company, one of Southeast Asia's prominent Ultra-High Temperature (UHT) milk and ready-to-drink beverage producers, posted a first-half net profit of Rp 1.1 trillion ($69.1 million). The strong showing was anchored by a blockbuster second quarter, where net earnings surged 131% year-on-year to Rp 553 billion ($34.7 million).

Ultrajaya's margin expansion highlights how top-tier consumer staples operators in Southeast Asia are defending earnings against sticky raw material inflation through price realization and marketing discipline. For global investors tracking Asian consumer trends, the dairy pioneer’s ability to drive double-digit volume growth while curbing promotional expenses underscores the resilience of consumer demand in Indonesia's fast-moving consumer goods (FMCG) market.

Revenue Soars Off Low-Base Comparison

Consolidated top-line revenue reached Rp 5.5 trillion ($345.9 million) during the first six months of 2026, marking a 35% increase compared to the same period last year.

The strong momentum was fueled by second-quarter sales surging 51% year-on-year to Rp 2.7 trillion ($169.8 million). According to Stockbit research, this strong growth was partly supported by a low base in Q2 2025, when sales contracted 16% year-on-year.

Despite face-to-face raw material price spikes, robust top-line execution lifted gross profit margins to 34.9% in Q2 2026 from 32.1% a year earlier, driving first-half gross margins up to 34.5%.

Marketing Efficiencies Supercharge Operating Profit

A dramatic reduction in promotional expenditures further accelerated profitability across the quarter.

Operating profit margin broadened to 24.1% in Q2 2026, up sharply from 16% in the prior-year period, as operating expenses remained nearly flat with a modest 1% year-on-year uptick.

This operational leverage was driven by heightened marketing efficiency, as advertising and promotion (A&P) costs dropped to 1.9% of revenue in the second quarter, compared to 6.3% in Q2 2025.

"Operating margin in 2Q26 rose significantly to 24.1%, supported by relatively flat opex as advertising & promotion efficiency improved," Stockbit Investment Analyst Amara Beatrice noted in a research report analyzing the company's financial statements.